China’s Inherent Economic Weakness – Why They Need “One-Belt/One-Road

The Conservative Treehouse ^ | august 30, 2017 | sundance

[arthurus]

To understand the China ‘One-Belt / ‘One-World‘ economic trade strategy it becomes necessary to understand how structurally weak the Chinese economy was when created.

People often talk about the ‘strength’ of China’s economic model; and indeed within a specific part of their economy -manufacturing- they do have economic strength.

However, the underlying critical architecture of the Chinese economic model is structurally flawed and President Trump with his current economic team understand the weakness better than all international adversaries

[arthurus]

Reagan did to the USSR what Trump is doing to China. Pay attention. Norkea is a sideshow and Kim’s problems will be solved vicariously.

[ClearCase_guy]

Good article.

I am convinced that the vast majority of people in the US government have one skill, and one skill only: Looting.

President Trump is different. He is a businessman. He is a negotiator. He knows how to get things done. He’s focused. He has a plan. He’s doing things no one else would think of doing. And he’s doing it all for us. MAGA.

[Inyo-Mono]

President Trump is different. He is a businessman. He is a negotiator. He knows how to get things done. He’s focused. He has a plan. He’s doing things no one else would think of doing. And he’s doing it all for us. MAGA.

You nailed it on that one. Thank God he is in charge.

[Louis Foxwell]

Providing the MSM and globalists a whole host of red herrings to vent about diverts their attention from the structures Trump is quietly building. While they fret over Melania’s shoes he builds an energy empire that has already upset the balance of economic power globally. The strategy is dependent upon the arrogance of the left’s belief that they are morally and intellectually superior. Quite simply, they are not. Leftists are devoid of deep understanding and prance about as if they were in control. Daily their control slips into patriot’s hands. By the end of Trump’s first term te Democrat party and the MSM will ave been reduced to impotent whimpers. The mid term elections will sound the death knell of leftist influence. MAGA

[Fiddlstix]

Nailed It !

[bigbob]

This analysis should be required reading for those who roll their eyes whenever some of “us” refer to Trump’s proficiency in playing 3D Chess. Unlike his predecessors, he truly understands the fundamental weakness of the Chinese economy and that’s why he has said we are so stupid for giving away the farm via lousy negotiations. He is squeezing them economically on all sides through their customer/partner nations: Venezula, Pakistan, India, Japan. China does nothing to achieve “win-win” outcomes, they only understand “win”. So to get them to get Fat Boi under control, they have to feel some pain, and that pain will be economic. It is playing out before our eyes, point and counterpoint

Fat Boi didn’t just decided to send a missile over Japan by accident - his Chinese bosses told him to, as a show of force to scare the Japanese. What happened the next day? We conduct a perfect test of an ABM, saying in effect “Screw you and your missile, punk, we’ll knock them down as fast as you put up”.

3D chess.

[central_va]

Here is the take away:

Donald Trump has been discussing this for more than two decades. We are going into economic combat with China!

China’s objective is conquest. China’s tool for conquest is economics. President Trump’s entire geopolitical strategy, using economics in a similar way, is an existential threat to China’s endeavor.

[Dr. Sivana]

China relies on: importing raw material, applying their economic skill set (manufacturing), and then exporting finished goods.

I'm not so sure I agree with this. For instance, in the important area of rare earth materials (needed in batteries and other high tech stuff), Red China is a big player, last time I checked.

China also mines plenty of iron ore (from Wikipedia:)
Country Production
Australia 817
Brazil 397
China 375*
India 156
Russia 101
South Africa 73
Ukraine 67
United States 46
Canada 46


They have also done a better job of creating supply chains that put them at a logistical advantage compared to other cheap labor sources (Vietnam, Philippines, Malaysia)

If we consider agriculture as a form of raw material, and it is arguably the most important after water, Red China has managed to export APPLES and PEANUTS to the U.S. (we are excellent at growing both), and has pretty much taken over most production of the increasingly popular cash crop Stevia which is really a South American product (with Japan buying up pretty much all of South America's output).

[Fhios]

Broadly speaking, the modern era Chinese are not able to think outside the box per se’ because the reference of all civil activity has been a history of box control by government, and compliance to stay (think) only within the approved box. The lack of intellectual thought mapping needed for innovation is why China relies on intellectual theft of innovation created by others.

Doesn't reflect well on the author of the material. These are cliche's and stereotypes.

The author goes wrong when they solidify an assumption into conventional wisdom and on to confirmational bias.

China moves slow but with surgical precision. They didn't have the major universities that pumped out grad student after grad student in STEM (science, technology, engineering, medicine).

They were behind and caught up as fast as they could, the even stole the method. It was the Japanese method of copying and violating IP in the most flagrant manner.

They are a fugue of Capitalism and Communism. Bad capitalist disappear and eventually replaced by a good capitalist -- one that toes the party line.

They will be a technology giant on their own right by next generation.

[mrsmith]

As usual he misses everything of import and rants.

But he’s right that the “One Belt” is a big deal to China and Trump is playing it like a pro.

Some points:
“One Road” is a path for Chinese goods to Europe and Middle East.
“One Road” decreases the effect of the Malacca Straits as a chokepoint for raw materials and Chinese goods. US can cheaply and easily close it in a heartbeat.
And EVERYONE is investing in the “One Road”. It’s a win-win deal for EVERYBODY in the world, if the Chinese would only go about it wisely instead of greedily.

[JerryBlackwell]

I believe your statistics are correct regarding the status quo. However, if the US would find the will to mine more iron ore or grow more apples or peanuts, we would.

[Teacher317]

China’s other great weakness is their national, cultural unfamiliarity with reliability. It’s like they are SURE that this economic stability will not last, and they WILL go back to eating grass again really soon, so therefore they will cut corners, and will cheat to earn an extra $5 while they can, even if it costs millions in the long run. I’ve done a lot of business in China, and even Chinese businesspersons do not trust Chinese business, Chinese courts, Chinese police, Chinese politicians, or Chinese products. They are all fiercely proud of China, but they know to a certainty that Chinese products and policies are never to be trusted.

[Aria]

They are all fiercely proud of China, but they know to a certainty that Chinese products and policies are never to be trusted.

Then what is it they're proud of?

[central_va]

Chinese make crap product. I know from personal experience.

[who_would_fardels_bear]

Is this a translation or was this written by an 8th grader?

[arthurus]

I believe it is a translation. The solecisms seem to be cross language rather than undeveloped.

[arthurus]

This is what Reagan did to the USSR. Reagan intuitively and with training understood Economics. Trump intuitively to the extreme and with training understands Business. Many very good businessmen understand Finance but not Economics. They are two different things. Trump’ intuition and instinct are superb and encompass both fields

[mrsmith]

Thanks.
Little mention is made of those who suffered through the Mao years.
They’re like those who went through the “Great Depression” here. They learned hard lessons and took them to heart.

[arthurus]

We can turn the rare earths deficit right around. We have plenty but the mining of it is “detrimental to the environment” so it is not done. China has these elements in concentrations. They are diffused through most of the ground in America. It is a little more difficult and disruptive to produce them ourselves but we can, in a pinch, do it. We just have to get the EPA away from it. Can trump do that? Like bears in the woods.